Evolve Funds Group launched the Evolve US Equity UltraYield ETF on Wednesday as the fund began trading on the Toronto Stock Exchange under the ticker BIGY, a CAD-hedged class.
The ETF is the first in Evolve’s UltraYield lineup and is designed for income-focused investors, with cash distributions paid twice per month.
The fund’s operative design is simple:
Write covered call options on an equal-weighted basket of leading U.S. stocks and add modest leverage, capped at about 33 percent, to amplify income while accepting capped upside. Evolve pegs the leverage ceiling at roughly 1.33 times net asset value.
Evolve set the first two distributions at $0.31250 per unit, with key dates on Sept. 29 and Oct. 15 and October payment dates. The management fee is 0.40 percent plus applicable taxes.
BIGY trades as CAD-hedged ETF units; additional classes may be available under the series documents.
“BIGY is the first ETF in our new UltraYield lineup, built specifically for income-focused investors with distributions paid twice per month,” Raj Lala, president and CEO at Evolve, said in prepared remarks.
He added that combining covered calls with modest leverage aims to deliver “enhanced income” in a single ticket.
Risk and structure
Regulatory documents classify BIGY as an alternative mutual fund that can borrow to invest, a feature that raises volatility.
The ETF Facts list a High risk rating and note the semi-monthly distribution cadence. Investors should understand that leverage can accelerate losses in stressed markets.
Evolve framed the launch within a broader push toward option-based income products in Canada. The firm reported more than $7 billion in assets under management and already runs a stable of enhanced-yield strategies across sectors and indexes.
